New Delhi: The National Company Law Tribunal (NCLT), Chandigarh Bench, has approved the merger of Tata Sons-owned Air India with Vistara, allowing both airlines to begin integrating their networks, human resources, and fleet deployments. This merger will result in the dissolution of Vistara within nine months.
Previously, the Competition Commission of India (CCI) had approved the merger in September 2023, followed by approval from Singapore's competition watchdog in March 2024.
Vistara, a joint venture between Tata Sons Private Limited and Singapore Airlines Limited (SIA), has Tata Sons holding a 51% stake and Singapore Airlines owning a 49% stake. The company operates under the name TATA SIA Airlines Limited.
In November 2022, Singapore Airlines announced the merger plan with Air India, aiming to create a dominant full-service airline in both domestic and international markets. Under the merger terms, Tata would hold 74.9% of the combined entity, while Singapore Airlines would own the remaining 25.1%.
Vistara, which commenced commercial operations in January 2015, operates a fleet of 70 aircraft.
Additionally, the Tata Group is in the process of merging its budget carriers, Air India Express and AIX Connect (formerly AirAsia India). Upon completion, the Air India group will consist of a full-service carrier, Air India, and a low-cost airline, Air India Express.
Air India CEO Campbell Wilson stated that the integration process is progressing well and that they are coordinating with the Directorate General of Civil Aviation (DGCA) regarding the transfer of new services.
In May, Wilson and Vistara CEO Vinod Kannan informed their employees that the merger is expected to be finalized by late 2024 or early 2025. They also revealed that 120 pilots have already been integrated and that they are awaiting the official NCLT orders.
Furthermore, the merged entity, Air India, plans to launch South Asia's largest aviation academy and establish an aircraft maintenance, repair, and operations (MRO) facility in Bengaluru, with SIA Engineering as the exclusive partner for designing and conceptualizing the facility.
